In this model, the freeholder is legally entitled to charge a commission on the buildings insurance premium and the communal electricity supply. We have seen a large number of instances where, having purchased their flat in good faith, flat owners have become frustrated and disillusioned at having no influence over the way service charges are spent. The Agent, spending money without reference to those who pay the service charge bills, has no real incentive so seek out good value for money from the contracts and services being administered at the site.
We are usually contacted by 2-3 disgruntled leaseholders initially to ask us what can be done. Dependent on the size of the building, we then invite all leaseholders to a free, no obligation meeting to discuss the Right To Manage process. At the meeting, we explain the benefits and potential costs. When flat owners realise they have the right to exert a much greater influence over their homes and investments for a relatively low sum of money, they are usually very interested in taking part.